Cost of owning a home in Cyprus: prices and rates

Taxes and tax benefits

Unlike most European countries, Cyprus has no property tax.

But citizens of the country and foreigners who own real estate must pay the following taxes annually:

• municipal tax: its size depends on the market value of the residential unit, ranging from 0.1 to 0.2%;
• rental tax (income tax): rate from 0 to 35%, depending on the amount of profit earned.

A few words on benefits: in Cyprus there is no need to pay transfer fees when registering purchase and sale agreements (this exemption applies to transactions on which VAT is paid).

Utilities

Housing costs are the main expense item for the vast majority of families in Cyprus. For example, utilities (electricity, heating and water) for a studio or a relatively small one-bedroom apartment run from 150 to 200 euros a month. Cold water costs depend on the volume consumed. The principle is simple: the more you use, the more you pay:

• for consumption up to 40 cubic meters a month, 1 cubic meter costs 0.9 euros;
• for consumption from 41 to 80 cubic meters - 1.4 euros;
• for consumption from 81 to 120 cubic meters - 2.3 euros;
• for consumption above 121 cubic meters, the rate is 5 euros per cubic meter.

Electricity is also billed on a progressive scale: at minimum consumption (up to 120 kWh) the rate is 2.3 euros per kilowatt, and at maximum consumption (above 1,000 kWh) it is 7.4 euros.

Cyprus has no centralized gas supply. Apartment owners use gas canisters, which on average last 1-2 months. The cost of such a canister ranges from 12 to 15 euros.

Waste collection is another expense item. The rate for this service depends on municipal requirements. Residents of economy- and business-class areas pay on average 60-75 euros a year, while owners of premium properties pay twice as much.

Property insurance

Owning property in Cyprus does not require mandatory insurance for an apartment or house. This is an optional add-on that protects the property and safeguards the owner's financial interests.

Housing is usually insured against theft, water damage, plane crashes, and the consequences of bad weather.

The cost of insurance depends on the value of the apartment itself and the property inside it. On average, owners pay from 1.5 to 2 euros for every 1,000 euros of insured value.

Cyprus citizenship through a property purchase

The Cyprus citizenship-by-investment program was closed in 2020. However, by buying property worth from 300,000 euros, a foreign investor gains the opportunity to obtain residency in Cyprus. It is possible to apply for a Cyprus passport after 5 years of permanent residence under residency status.